$6bn Local Firms’ Investment Offers Nigeria Significant Oil Industry Control – NEITI

The Nigeria Extractive Industries Transparency Initiative (NEITI) has observed that President Bola Ahmed Tinubu’s courageous reforms have led to landmark achievements in Nigeria’s oil and gas sector in the last two years.

The NEITI also noted that the Nigerian National Petroleum Company Limited (NNPCL) championed many of the successful investments.

Speaking when the NEITI engaged in a plan with the NNPCL to set up a technical committee to enhance extractive sector governance in Nigeria, the executive secretary of NEITI, Dr Orji Ogbonnaya Orji, specifically stated that these investments, among other foreign direct investments of over $6 billion, were all led by Nigerian indigenous companies.
Orji said this has shifted control of more than 50 per cent of oil production into Nigerian hands, boosting domestic revenue, jobs, and national pride.

The Transparency Agency also commended the federal government’s CNG initiative and the AKK Gas Project, which have far-reaching implications for Nigeria’s energy security, gas availability, job creation, and inclusive growth.

NEITI stated that such inflows and progress are only possible in a stable, transparent, and accountable business environment anchored by a strong and competitive commercial initiative driven by the new NNPC Ltd. Both Agencies have also agreed to enter into a memorandum of Understanding (MoU) on data exchange, training, and compliance with the EITI Standard.

This was the outcome of a meeting in Abuja on Thursday between the executive secretary of NEITI, Dr Orji Ogbonnaya Orji, and the group chief executive officer of NNPC Ltd, Bayo Ojulari.

The MoU will define the rules of engagement on addressing the various remediation issues highlighted in the NEITI Reports, while the technical committee will drive implementation.

The MoU will also outline areas of mutual cooperation between NEITI and NNPC Ltd. on training and manpower development, improvement of information technology (IT) systems, and development of frameworks to enhance operational efficiency. The MoU will further outline modalities and frameworks for partnership and collaboration on inter-agency partnerships and managing information and data disclosures.

The NNPC Ltd GCEO, Bayo Ojulari, while receiving the delegation from NEITI affirmed NNPC Ltd commitment to implementing the principles of transparency, accountability in the extractive sector and the transformation that comes with it.

“We in NNPC are working for Nigeria. That’s what we are here for, and that’s slightly different from being in the private sector. Whatever we do is in the best interest of Nigeria. That’s our aspiration. So it’s quite impressive to see how NEITI has supported NNPC in building that credibility.

The NNPC also designated the new chief compliance officer, Jejere, to oversee NNPC-NEITI relations. The courtesy call was attended by the entire top management teams of the two institutions. The NNPC’s chief finance officer was officially assigned to serve as an alternate on the NEITI Board without the GCEO to ensure effective NNPC-industry representation in NSWG meetings.